8-K
BV Financial, Inc. (BVFL)
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported): January 27, 2025 |
|---|
BV FINANCIAL, INC.
(Exact name of Registrant as Specified in Its Charter)
| Maryland | 001-36094 | 14-1920944 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
| 7114 North Point Blvd. | ||
| Baltimore, Maryland | 21219 | |
| (Address of Principal Executive Offices) | (Zip Code) | |
| Registrant’s Telephone Number, Including Area Code: 410 477-5000 | ||
| --- |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.01 per share | BVFL | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On January 27, 2025, BV Financial, Inc. (the “Company”), the holding company for BayVanguard Bank, issued a press release announcing its financial results for the year ended December 31, 2024. A copy of the Company's press release is attached as Exhibit 99.1 and is furnished herewith.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
99.1
Press Release dated January 27, 2025
104 Cover Page Interactive Data File (embedded within Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BV FINANCIAL, INC. | |||
|---|---|---|---|
| Date: | January 28, 2025 | By: | /s/ Michael J. Dee |
| Michael J. Dee <br>Chief Financial Officer |
EX-99.1
Exhibit 99.1 Contact:
Michael J. Dee
Chief Financial Officer
(410) 477- 5000
BV FINANCIAL, INC. ANNOUNCES FINANCIAL RESULTS
Baltimore, Maryland, January 27, 2025– BV Financial, Inc. ( NASDAQ: BVFL), (the “Company”) the holding company for BayVanguard Bank (the “Bank”), reported net income of $11.7 million or $1.10 per diluted share for the year ended December 31, 2024 compared to net income of $13.7 million or $1.47 per diluted share for the year ended December 31, 2023. Net income for the quarter ended December 31, 2024 was $1.95 million, or $0.18 per diluted share compared to net income of $3.0 million, or $0.28 per diluted share, for the quarter ended December 31, 2023.
Adjusted net income, a Non-GAAP financial metric, was $12.9 million for both years ended December 31, 2024 and 2023. For the quarters ended December 31 2024 and 2023, adjusted net income was $2.7 million and $3.0 million, respectively. For a reconciliation of Net Income as reported and Non-GAAP adjusted net income, see the table below.
Financial Highlights
- Return on average assets and return on average equity for the year ended December 31, 2024 were 1.32% and 5.77%, respectively. Return on average assets and return on average equity for the three months ended December 31, 2024 were 0.88% and 3.83%, respectively.
- Net Loans increased $33.0 million, or 4.74% to $729.2 million at December 31, 2024 compared to $696.2 million at December 31, 2023.
- Deposits increased $17.4 million, or 2.74%, from $634.1 million at December 31, 2023 to $651.5 million at December 31, 2024. Brokered deposits of $50 million were utilized to replace run-off of retail certificates of deposit and non-interest-bearing accounts.
- During the year, the Company repurchased 1.1 million shares of common stock at an average cost of $16.27. In September 2024, the Company issued 343,562 shares of restricted stock with a value of $5.0 million. These restricted shares will be expensed over 48 months.
- During the quarter ended December 31, 2024, the Company recorded a provision for credit losses of $604,000 consisting of $490,000 in the allowance for credit losses (ACL) – loans and $114,000 in the ACL-unfunded commitments. During the year ended December 31, 2024, the Company recorded a recovery of the provision for credit losses of $203,000 as net recoveries of $315,000 exceeded the required increase in the ACL for loans and the ACL for unfunded commitments.
Financial Condition
Total Assets. Total assets were $911.8 million at December 31, 2024, an increase of $26.5 million, or 3.00%, from $885.3 million at December 31, 2023. The increase was due primarily to a $33.0 million increase in net loans receivable to $729.2 million at December 31, 2024 and a $2.5 million increase in securities available for sale partially offset by a $4.2 million decrease in securities held to maturity, a $3.2 million decrease in cash and cash equivalents and decreases in premises and equipment and other assets.
Cash and Cash Equivalents. Cash and cash equivalents decreased $3.2 million, or 4.4%, to $70.5 million at December 31, 2024 from $73.7 million at December 31, 2023.
Net Loans Receivable. Net loans receivable increased $33.0 million, or 4.74%, to $729.2 million at December 31, 2024 from $696.2 million at December 31, 2023. Increases in investor commercial real estate, 1-4 family owner occupied, construction loans and commercial loans offset decreases in owner occupied commercial real estate loans, non-owner occupied 1-4 family loans, farm loans, consumer loans and loans guaranteed by the U.S. Government.
Securities. Securities available for sale (“AFS”) increased $2.5 million, or 7.2%, to $37.3 million at December 31, 2024 from $34.8 million at December 31, 2023. Securities held to maturity (HTM) decreased $4.2 million or 41.2% to $6.0 million at December 31, 2024. Maturities and paydowns in the HTM portfolio were replaced, as deemed necessary by securities in the AFS portfolio.
Total Liabilities. Total liabilities increased $30.1 million or 4.4%, to $716.3 million at December 31, 2024 from $686.2 million at December 31, 2023. The increase was primarily due to a increase in total deposits of $17.4 million, and an increase in borrowings of $12.6 million.
Deposits. Total deposits increased $17.4 million, or 2.7%, to $651.5 million at December 31, 2024 from $634.1 million at December 31, 2023. Interest-bearing deposits increased $36.3 million, or 7.5%, to $521.8 million at December 31, 2024 from $492.1 million at December 31, 2023. Noninterest bearing deposits decreased $12.3 million, or 8.7%, to $129.7 million at December 31, 2024 from $142.0 million at December 31, 2023. The Company utilized $50 million in brokered certificates of deposits with five year terms to replace a $16.5 million reduction in retail certificates of deposit and to fund loan growth.
Borrowings. The Company had $15 million in Federal Home Loan Bank borrowings at December 31, 2024 compared to $0 million in Federal Home Loan Bank borrowings at December 31, 2023. In the first quarter of 2024, the Company paid off $3.0 million in junior subordinated debt assumed in the acquisition of Delmarva Bancorp in 2020. This resulted in the write-off (increase in interest expense) of the remaining purchase accounting fair market value adjustment of $566,000.
Stockholders’ Equity. Stockholders’ equity decreased $3.6 million or 1.8%, to $195.5 million at December 31, 2024. During the year, the Company repurchased 1.1 million shares of common stock at an average cost of $16.27. The reduction in stockholders equity resulting from the repurchase program exceeded net income and other adjustments.
Asset Quality. Non-performing assets at December 31, 2024 totaled $4.2 million consisting of $4.0 million in nonperforming loans and $159,000 in other real estate owned, compared to $10.7 million at December 31, 2023, consisting of $10.5 million in non-performing loans and $170,000 million in other real estate owned. During the third quarter of 2024, our largest loan on non-accrual, a $3.8 million investor commercial real estate loan paid off. At December 31, 2024, the allowance for credit losses on loans was $8.5 million, which represented 1.15% of total loans and 212.5% of non-performing loans compared to $8.68 million at December 31, 2023, which represented 1.21% of total loans and 82.9% of non-performing loans.
Comparison of Operating Results for the Three and Twelve Months Ended December 31, 2024 and 2023
Net Income. The Company reported net income of $11.7 million or $1.10 per diluted share for the year ended December 31, 2024 compared to net income of $13.7 million or $1.47 per diluted share for the year ended December 31, 2023. Net income for the quarter ended December 31, 2024 was $1.95 million, or $0.18 per diluted share compared to net income of $3.0 million, or $0.28 per diluted share, for the quarter ended December 31, 2023.
Net Interest Income. Net interest income was $9.0 million for the three months ended December 31, 2024 compared to $8.9 million in the three months ended December 31, 2023. The net interest margin for the three months ended December 31, 2024 was 4.34% compared to 4.30% for the three months ended December 31, 2023.
Net interest income was $35.2 million for the year ended December 31, 2024, compared to $34.2 million in the year ended December 31, 2023. The net interest margin for the year ended December 31, 2024 was 4.27% compared to 4.23% for the year ended December 31, 2023.
Noninterest Income. For the three months ended December 31, 2024, noninterest income totaled $644,000 compared to $698,000 in the quarter ended December 31, 2023. In the quarter ended December 31, 2023, the Company recognized a gain of $31,000 on the sale of a foreclosed real estate property.
For the year ended December 31, 2024, noninterest income totaled $2.5 million as compared to $3.8 million for the year ended December 31, 2023. For the year ended December 31, 2023, the Company recognized a gain of $709,000 on the sale of foreclosed real estate and $225,000 in excess life insurance proceeds and a $188,000 gain on the sale of a closed branch office.
Noninterest Expense. For the three months ended December 31, 2024 noninterest expense totaled $6.2 million compared to $5.2 million for the three months ended December 31, 2023. Compensation and benefits expenses increased by 27.3% due to increases in salaries and the costs of the equity awards granted after the stockholders approved the 2024 Equity Incentive Plan. These expenses totaled $1.2 million in the quarter.
For the year ended December 31, 2024 noninterest expense totaled $21.5 million compared to $19.4 million in the year ended December 31, 2023. Compensation and benefits increased by 14.3% due to increased and salary levels and the costs of the equity awards granted after the stockholders approved the 2024 Equity Incentive Plan. These expenses totaled $1.5 million in the year. Professional fees data processing and other expenses also increased year over year.
Forward-Looking Statements
This press release may contain certain forward-looking statements that are based on management’s current expectations regarding economic, legislative and regulatory issues that may impact the Company’s earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, increased competitive pressures, the effects of inflation, potential recessionary conditions, general economic conditions or conditions within the securities markets, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the FRB, changes in the quality, size and composition of our loan and securities portfolios, changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio, changes in demand for our products and services, accounting and tax changes, deposit flows, real estate values and competition, changes in accounting principles, policies or guidelines, changes in legislation or regulation and other economic, competitive, governmental, regulatory and technological factors affecting the Company’s operations, pricing, products and services, a potential government shutdown, a failure in or breach of our operational or security systems or infrastructure, including cyberattacks that could adversely affect the Company’s financial condition and results of operations and the business in which the Company and the Bank are engaged and the failure to maintain current technologies, the failure to retain or attract employees.
BV Financial, Inc.
BV Financial, Inc. is the parent company of BayVanguard Bank. BayVanguard Bank is headquartered in Baltimore, Maryland with thirteen branches in the Baltimore metropolitan area and the eastern shore of Maryland. The Bank is a full-service community-oriented financial institution dedicated to serving the financial service needs of consumers and businesses.
| BV FINANCIAL, INC. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Financial Ratios | ||||||||||||
| At or For the Three Months | At or For the Year | |||||||||||
| Ended December 31, | Ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Performance Ratios(1): | ||||||||||||
| Return on average assets | 0.88 | % | 1.34 | % | 1.32 | % | 1.54 | % | ||||
| Return on average equity | 3.83 | % | 6.11 | % | 5.77 | % | 9.93 | % | ||||
| Interest rate spread(2) | 3.59 | % | 3.64 | % | 3.50 | % | 3.74 | % | ||||
| Net interest margin(3) | 4.34 | % | 4.30 | % | 4.27 | % | 4.23 | % | ||||
| Non-interest expense to average assets | 2.79 | % | 2.29 | % | 2.42 | % | 2.19 | % | ||||
| Efficiency ratio(4) | 64.27 | % | 56.19 | % | 57.02 | % | 51.03 | % | ||||
| Average interest-earning assets to average interest-bearing liabilities | 154.03 | % | 153.30 | % | 154.92 | % | 142.89 | % | ||||
| Average equity to average assets | 22.91 | % | 21.87 | % | 22.88 | % | 15.55 | % | ||||
| Credit Quality Ratios: | ||||||||||||
| Allowance for credit losses as a percentage of total loans | 1.15 | % | 1.21 | % | 1.15 | % | 1.21 | % | ||||
| Allowance for credit losses as a percentage of non-performing loans | 212.51 | % | 82.49 | % | 212.51 | % | 82.94 | % | ||||
| Net charge-offs (recoveries) to average outstanding loans during the year | -0.04 | % | -0.01 | % | -0.04 | % | -0.07 | % | ||||
| Non-performing loans as a percentage of total loans | 0.57 | % | 1.46 | % | 0.54 | % | 1.46 | % | ||||
| Non-performing loans as a percentage of total assets | 0.44 | % | 1.17 | % | 0.44 | % | 1.17 | % | ||||
| Total non-performing assets as a percentage of total assets | 0.46 | % | 1.19 | % | 0.46 | % | 1.19 | % | ||||
| Other: | ||||||||||||
| Number of offices | 13 | 14 | 13 | 14 | ||||||||
| Number of full-time equivalent employees | 111 | 112 | 111 | 112 | ||||||||
| (1) Performance ratios are annualized. | ||||||||||||
| (2) Represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. | ||||||||||||
| (3) Represents net interest income as a percentage of average interest-earning assets. | ||||||||||||
| (4) Represents non-interest expenses divided by the sum of net interest income and non-interest income. | ||||||||||||
| BV FINANCIAL, INC. | ||||||||||||
| --- | --- | --- | --- | --- | --- | |||||||
| Consolidated Balance Sheets | ||||||||||||
| December 31, 2023 | ||||||||||||
| (dollars in thousands, except share amounts) | derived from audited financial statements | |||||||||||
| Assets | ||||||||||||
| Cash | 5,842 | $ | 9,260 | |||||||||
| Interest-bearing deposits in other banks | 64,658 | 64,482 | ||||||||||
| Cash and cash equivalents | 70,500 | 73,742 | ||||||||||
| Equity Investment | 391 | 256 | ||||||||||
| Securities available for sale | 37,259 | 34,781 | ||||||||||
| Securities held to maturity (fair value of 5,175 and 9,212, ACL of 4 and 6) | 5,979 | 10,209 | ||||||||||
| Loans held to maturity | 737,760 | 704,802 | ||||||||||
| Allowance for Credit Losses | (8,522 | ) | (8,554 | ) | ||||||||
| Net Loans | 729,238 | 696,248 | ||||||||||
| Other real estate owned | 159 | 170 | ||||||||||
| Premises and equipment, net | 13,224 | 14,250 | ||||||||||
| Federal Home Loan Bank of Atlanta stock, at cost | 1,366 | 626 | ||||||||||
| Investment in life insurance | 20,058 | 19,657 | ||||||||||
| Accrued interest receivable | 3,161 | 3,279 | ||||||||||
| Goodwill | 14,420 | 14,420 | ||||||||||
| Intangible assets, net | 831 | 1,012 | ||||||||||
| Deferred tax assets, net | 8,899 | 8,969 | ||||||||||
| Other assets | 6,336 | 7,635 | ||||||||||
| Total assets | 911,821 | $ | 885,254 | |||||||||
| Liabilities and Stockholders' Equity | ||||||||||||
| Liabilities | ||||||||||||
| Noninterest-bearing deposits | 129,724 | $ | 142,030 | |||||||||
| Interest-bearing deposits | 521,767 | 492,090 | ||||||||||
| Total deposits | 651,491 | 634,120 | ||||||||||
| FHLB borrowings | 15,000 | — | ||||||||||
| Subordinated Debentures | 34,883 | 37,251 | ||||||||||
| Other liabilities | 14,948 | 14,818 | ||||||||||
| Total liabilities | 716,322 | 686,189 | ||||||||||
| Stockholders' equity | ||||||||||||
| Preferred stock, 0.01 par value; 1,000,000 shares authorized; none issued or outstanding | — | — | ||||||||||
| Common stock, 0.01 par value; 45,000,000 shares authorized at December 31, 2024 and December 31, 2023; 10,645,284 shares issued and outstanding as of December 31, 2024 and 11,375,803 shares issued and outstanding as of December 31, 2023 | 106 | 114 | ||||||||||
| Paid-in capital | 94,679 | 110,465 | ||||||||||
| Unearned common stock held by employee stock ownership plan | (7,160 | ) | (7,328 | ) | ||||||||
| Retained earnings | 109,495 | 97,772 | ||||||||||
| Accumulated other comprehensive loss | (1,621 | ) | (1,958 | ) | ||||||||
| Total stockholders' equity | 195,499 | 199,065 | ||||||||||
| Total liabilities and stockholders' equity | 911,821 | $ | 885,254 |
All values are in US Dollars.
| BV FINANCIAL, INC. | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Statements of Income | ||||||||||||||||
| (dollars in thousands, except per share amounts) | Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| Interest Income | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Loans, including fees | $ | 10,522 | $ | 9,878 | $ | 41,003 | $ | 37,742 | ||||||||
| Investment securities available for sale | 354 | 311 | 1,319 | 1,156 | ||||||||||||
| Investment securities held to maturity | 48 | 92 | 314 | 367 | ||||||||||||
| Other interest income | 987 | 1,196 | 4,046 | 4,154 | ||||||||||||
| Total interest income | 11,911 | 11,477 | 46,682 | 43,419 | ||||||||||||
| Interest Expense | ||||||||||||||||
| Interest on deposits | 2,432 | 1,920 | 9,042 | 5,614 | ||||||||||||
| Interest on FHLB borrowings | 2 | 99 | 2 | 1,411 | ||||||||||||
| Interest on Subordinated debentures | 465 | 543 | 2,451 | 2,165 | ||||||||||||
| Total interest expense | 2,899 | 2,562 | 11,495 | 9,190 | ||||||||||||
| Net interest income | 9,012 | 8,915 | 35,187 | 34,229 | ||||||||||||
| Provision for (recovery of) credit losses | 604 | 435 | (203 | ) | (45 | ) | ||||||||||
| Net interest income after provision for (recovery of) credit losses | 8,408 | 8,480 | 35,390 | 34,274 | ||||||||||||
| Noninterest Income | ||||||||||||||||
| Service fees on deposits | 123 | 109 | 426 | 413 | ||||||||||||
| Fees from debit cards | 177 | 181 | 706 | 724 | ||||||||||||
| Income from investment in life insurance | 111 | 92 | 400 | 641 | ||||||||||||
| Gain on sale of fixed assets | - | - | - | 188 | ||||||||||||
| Gain on sale of foreclosed real estate | - | 31 | - | 709 | ||||||||||||
| Other income | 233 | 285 | 982 | 1,082 | ||||||||||||
| Total noninterest income | 644 | 698 | 2,514 | 3,757 | ||||||||||||
| Noninterest Expense | ||||||||||||||||
| Compensation and related benefits | 4,291 | 3,371 | 14,005 | 12,257 | ||||||||||||
| Occupancy | 374 | 426 | 1,616 | 1,604 | ||||||||||||
| Data processing | 364 | 339 | 1,480 | 1,373 | ||||||||||||
| Advertising | 7 | 11 | 23 | 43 | ||||||||||||
| Professional fees | 252 | 290 | 1,009 | 886 | ||||||||||||
| Equipment | 95 | 106 | 396 | 425 | ||||||||||||
| Foreclosed real estate holding costs | 0 | 13 | 13 | 186 | ||||||||||||
| Amortization of intangible assets | 45 | 45 | 180 | 183 | ||||||||||||
| FDIC insurance premiums | 81 | 98 | 326 | 336 | ||||||||||||
| Other expense | 697 | 458 | 2,450 | 2,116 | ||||||||||||
| Total noninterest expense | 6,206 | 5,157 | 21,498 | 19,409 | ||||||||||||
| Net income before tax | 2,846 | 4,021 | 16,406 | 18,622 | ||||||||||||
| Income tax expense | 895 | 1,012 | 4,683 | 4,915 | ||||||||||||
| Net income | $ | 1,951 | $ | 3,009 | $ | 11,723 | $ | 13,707 | ||||||||
| Basic earnings per share | $ | 0.18 | $ | 0.28 | $ | 1.10 | $ | 1.47 | ||||||||
| Diluted earnings per share | $ | 0.18 | $ | 0.28 | $ | 1.10 | $ | 1.47 | ||||||||
| BV FINANCIAL, INC. | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Average Balance Sheet for the Three Months ended December 31, | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| For the Three Months Ended December 31, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| (dollars in thousands) | Average Outstanding Balance | Interest | Average Yield/Rate | Average Outstanding Balance | Interest | Average Yield/Rate | ||||||||||
| (Unaudited) | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||
| Loans | $ | 709,668 | $ | 10,522 | 5.88 | % | $ | 693,217 | $ | 9,878 | 5.65 | % | ||||
| Securities available-for-sale | 38,447 | 354 | 3.65 | % | 35,194 | 311 | 3.51 | % | ||||||||
| Securities held-to-maturity | 6,668 | 48 | 2.86 | % | 11,193 | 92 | 3.26 | % | ||||||||
| Cash, cash equivalents and other interest-earning assets | 68,523 | 987 | 5.74 | % | 82,482 | 1,196 | 5.65 | % | ||||||||
| Total interest-earning assets | 823,306 | 11,911 | 5.74 | % | 822,086 | 11,477 | 5.54 | % | ||||||||
| Noninterest-earning assets | 68,633 | 78,694 | ||||||||||||||
| Total assets | $ | 891,939 | $ | 900,780 | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||
| Interest-bearing demand deposits | $ | 87,548 | 196 | 0.89 | % | $ | 83,014 | 234 | 1.12 | % | ||||||
| Savings deposits | 123,838 | 73 | 0.23 | % | 143,666 | 61 | 0.17 | % | ||||||||
| Money market deposits | 117,039 | 777 | 2.63 | % | 88,671 | 312 | 1.40 | % | ||||||||
| Certificates of deposit | 171,063 | 1,386 | 3.21 | % | 176,738 | 1,313 | 2.95 | % | ||||||||
| Total interest-bearing deposits | 499,488 | 2,432 | 1.93 | % | 492,089 | 1,920 | 1.55 | % | ||||||||
| Federal Home Loan Bank advances | 163 | 2 | 4.87 | % | 6,929 | 99 | 5.61 | % | ||||||||
| Subordinated debentures | 34,867 | 465 | 5.29 | % | 37,228 | 543 | 5.81 | % | ||||||||
| Total borrowings | 35,030 | 467 | 5.29 | % | 44,157 | 642 | 5.78 | % | ||||||||
| Total interest-bearing<br>liabilities | 534,518 | 2,899 | 2.15 | % | 536,246 | 2,562 | 1.90 | % | ||||||||
| Noninterest-bearing demand deposits | 134,007 | 144,330 | ||||||||||||||
| Other noninterest-bearing liabilities | 20,471 | 23,207 | ||||||||||||||
| Total liabilities | 688,996 | 703,783 | ||||||||||||||
| Equity | 202,943 | 196,997 | ||||||||||||||
| Total liabilities and equity | $ | 891,939 | $ | 900,780 | ||||||||||||
| Net interest income | $ | 9,012 | $ | 8,915 | ||||||||||||
| Net interest rate spread | 3.59 | % | 3.64 | % | ||||||||||||
| Net interest-earning assets | $ | 288,788 | $ | 285,840 | ||||||||||||
| Net interest margin | 4.34 | % | 4.30 | % | ||||||||||||
| Average interest-earning assets to interest-bearing liabilities | 154.03 | % | 153.30 | % | ||||||||||||
| BV FINANCIAL, INC. | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Average Balance Sheet for the Years ended December 31 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| For the Year Ended December 31, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| (dollars in thousands) | Average Outstanding Balance | Interest | Average Yield/Rate | Average Outstanding Balance | Interest | Average Yield/Rate | ||||||||||
| (Unaudited) | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||
| Loans | $ | 703,411 | $ | 41,003 | 5.81 | % | $ | 683,657 | $ | 37,742 | 5.52 | % | ||||
| Securities available-for-sale | 35,544 | 1,319 | 3.70 | % | 35,607 | 1,156 | 3.25 | % | ||||||||
| Securities held-to-maturity | 9,542 | 314 | 3.28 | % | 12,003 | 367 | 3.06 | % | ||||||||
| Cash, cash equivalents and other interest-earning assets | 73,096 | 4,046 | 5.53 | % | 77,865 | 4,154 | 5.34 | % | ||||||||
| Total interest-earning assets | 821,593 | 46,682 | 5.67 | % | 809,132 | 43,419 | 5.37 | % | ||||||||
| Noninterest-earning assets | 68,865 | 78,100 | ||||||||||||||
| Total assets | $ | 890,458 | $ | 887,232 | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||
| Interest-bearing demand deposits | $ | 84,655 | 878 | 1.03 | % | $ | 86,114 | 614 | 0.71 | % | ||||||
| Savings deposits | 134,795 | 323 | 0.24 | % | 154,629 | 202 | 0.13 | % | ||||||||
| Money market deposits | 101,831 | 2,274 | 2.23 | % | 91,573 | 803 | 0.88 | % | ||||||||
| Certificates of deposit | 173,932 | 5,567 | 3.19 | % | 170,299 | 3,995 | 2.35 | % | ||||||||
| Total interest-bearing deposits | 495,213 | 9,042 | 1.82 | % | 502,615 | 5,614 | 1.12 | % | ||||||||
| Federal Home Loan Bank advances | 41 | 2 | 4.86 | % | 26,503 | 1,411 | 5.32 | % | ||||||||
| Subordinated debentures | 35,071 | 2,451 | 6.97 | % | 37,149 | 2,165 | 5.83 | % | ||||||||
| Total borrowings | 35,112 | 2,453 | 6.97 | % | 63,652 | 3,576 | 5.62 | % | ||||||||
| Total interest-bearing<br>liabilities | 530,325 | 11,495 | 2.16 | % | 566,267 | 9,190 | 1.62 | % | ||||||||
| Noninterest-bearing demand deposits | 137,935 | 149,630 | ||||||||||||||
| Other noninterest-bearing liabilities | 19,074 | 33,363 | ||||||||||||||
| Total liabilities | 687,334 | 749,260 | ||||||||||||||
| Equity | 203,124 | 137,972 | ||||||||||||||
| Total liabilities and equity | $ | 890,458 | $ | 887,232 | ||||||||||||
| Net interest income | $ | 35,187 | $ | 34,229 | ||||||||||||
| Net interest rate spread | 3.50 | % | 3.74 | % | ||||||||||||
| Net interest-earning assets | $ | 291,268 | $ | 242,865 | ||||||||||||
| Net interest margin | 4.27 | % | 4.23 | % | ||||||||||||
| Average interest-earning assets to interest-bearing liabilities | 154.92 | % | 142.89 | % | ||||||||||||
| ALLOWANCE FOR CREDIT LOSS - LOANS | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||||
| (Dollars in thousands) | ||||||||||||||||
| QTR | YTD | |||||||||||||||
| 12/31/2024 | 12/31/2024 | |||||||||||||||
| Beginning Balance | $ | 8,001 | $ | 8,554 | ||||||||||||
| Provision for credit losses -loans | 490 | (347 | ) | |||||||||||||
| Net Charge-offs (recoveries): | ||||||||||||||||
| Owner Occupied 1-4 | (3 | ) | (115 | ) | ||||||||||||
| Non-Owner Occupied 1-4 | (27 | ) | (195 | ) | ||||||||||||
| Investor Commercial Real Estate | — | — | ||||||||||||||
| OO Commercial Real Estate | — | (3 | ) | |||||||||||||
| Construction & Land | (1 | ) | (4 | ) | ||||||||||||
| Farm Loans | — | — | ||||||||||||||
| Marine & Consumer | — | 2 | ||||||||||||||
| Guaranteed by the US Gov't | — | — | ||||||||||||||
| Commercial | — | — | ||||||||||||||
| Net charge-offs (recoveries) | (31 | ) | (315 | ) | ||||||||||||
| Ending Balance- ACL for Loans | $ | 8,522 | $ | 8,522 | ||||||||||||
| Balance Reserve for unfunded loan commitments | 353 | 353 | ||||||||||||||
| Balance Reserve for HTM Securities | 4 | 4 | ||||||||||||||
| Total ACL | $ | 8,879 | $ | 8,879 | ||||||||||||
| Provision expense for Unfunded Commitments | 115 | 146 | ||||||||||||||
| Provision expense for HTM Securities | (1 | ) | (2 | ) | ||||||||||||
| Total other provision expense | $ | 114 | $ | 144 | ||||||||||||
| Total provision for (recovery of ) credit losses | $ | 604 | $ | (203 | ) | |||||||||||
| RECONCILIATION TABLE (UNAUDITED) | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| NON-GAAP ADJUSTED NET INCOME | ||||||||||||||||
| Non-GAAP Reconciliation | ||||||||||||||||
| In addition to results presented in accordance with generally accepted accounting principles utilized in the Unites States ("GAAP"), this earnings release contains a non-GAAP financial measure, Non-GAAP adjusted net income. The Company believes this non-GAAP financial measure is useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time. Non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders' equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. | ||||||||||||||||
| Three Months ended December 31, | Year ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net Income (GAAP) | $ | 1,951 | $ | 3,009 | $ | 11,723 | $ | 13,707 | ||||||||
| Plus(minus) tax adjusted items: | ||||||||||||||||
| Legal Expense recovery from problem loan | - | - | 78 | - | ||||||||||||
| Write-off of FMV adjustment on pay-off of acquired junior subordinated debt | - | - | (404 | ) | - | |||||||||||
| Loan Prepayment Penalty | - | - | 194 | - | ||||||||||||
| Death benefit from bank owned life insurance | - | - | - | 173 | ||||||||||||
| Gain on sale of foreclosed real estate | - | - | - | 499 | ||||||||||||
| Gain on sale of branch building | - | - | - | 138 | ||||||||||||
| Tax Adjusted items | - | - | (132 | ) | 810 | |||||||||||
| 2024 Equity Plan Expenses - tax adjusted | 792 | - | 1,101 | - | ||||||||||||
| Non GAAP adjusted net income | $ | 2,743 | $ | 3,009 | $ | 12,956 | $ | 12,897 |